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A clarification regarding GST imposition on Government work contracts

Hi,

We're in agreement with MPAKVN, Bhopal for construction of water supply project in Vidisha, The tender was invited on 21/04/2017 i.e. in pre-GST period. we were awarded tender on 15/06/2017. The agreement was signed by us on 05/07/2017 and the work order was issued on 11/07/2017.

There were clauses in the agreement regarding taxes and duties as below
1. The rates quoted by the contractor shall be deemed to be inclusive of the commercial tax and other levies, duties and cess, toll, taxes of central and state governments, local bodies and authorities.
2. Any changes in the taxes due to change in legislation or for any other reason shall not be payable to the contractor.

We were paid GST @18 on invoice for RA bill for few bills until they started recovering the previously paid GST on the basis of above clause.

If there is a circular from relevant authority like MPPWD or State court rulings which can guide us for claiming the payment of GST from the department. If there is ruling that states that the SOR rates for tenders invited before GST imposition and agreement made after imposition of GST, should be arrived by deduction the VAT and service tax from the old rates and adding the GST to the rate, we would prefer it.

Or anything else which can help us claiming GST in full or part, from the department, would be very much appreciated.

Thank you,
Regars,

26
Apr

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